Oil steadied near $48 a barrel as refiners on the US Gulf Coast continued to recover following two strikes from Hurricane Harvey, while Irma weakened further after moving inland.
Futures slipped 0.5 percent in New York after rising 1.2 percent. US refiners closed by Hurricane Harvey more than two weeks ago continue to restart, including the nation’s largest, operated by Motiva Enterprises LLC. The 12 OPEC nations engaged in production cuts reduced their output by 109,000 barrels a day last month, according to a person familiar with the matter.
The hurricanes have rattled energy markets, with Irma shutting Florida fuel stations and ports and Harvey earlier halting about one-quarter of the nation’s refining capacity. Goldman Sachs Group Inc. forecasts the two storms will initially hurt crude demand by
about 600,000 barrels a day, though the recovery will likely raise consumption and offset that loss.
“Following the price noises from the hurricanes in the US Gulf,” oil markets are showing underlying strength, said Bjarne Schieldrop, chief
commodities analyst at SEB AB in Oslo. “In the shorter term
we have a constructive price
situation. OPEC is standing
firm on its cuts.”